What you Need to Know Before you Buy a Condo

It should come as no surprise that as housing prices across Canada continue to rise, developers and home buyers alike are looking for more affordable alternatives to single-family homes. Not only are condos an attractive option for young adults, but they are suitable for retirees looking to downsize as well. So, whether you are a first-time buyer or you’re shopping condos for other reasons, what do you need to know before you buy? Surprisingly, despite increasing demand for condos, there are few resources available to help buyers choose the right condo. Let’s take a closer look at the condo market, so you can make the smart choice.

Condo Benefits

First, let’s discuss some of the benefits of condos other than their relatively affordable price. For many urban professionals, condos are an intelligent choice simply for their location. Condos tend to be right in the centre of cities and municipalities, so access to entertainment, restaurants, and shopping can be better. But even for retirees, many condos feature a multitude of built-in amenities that make them an excellent home. From fitness facilities and swimming pools to in-house security, underground parking, and common spaces (for entertaining), condos today are built to make life more convenient. Moreover, condo maintenance is typically much less hassle than maintaining a home and surrounding yard.

Hidden Costs

Even though there are many fine benefits to buying condos, many newcomers to the market may not realize that there are often fees associated with condo maintenance – especially since there are shared spaces that need regular attention. So, when you go to the bank to get a sense of the mortgage you can have financed, you should also take into account condo fees which may include homeowner association dues (aka strata fees). Homeowner association dues typically range from $100 to more than $500 per month depending on location and amenities available. As you can see, these fees may have a significant impact on your bottom line.

Condos versus Single-Family Homes

So, what are the main differences between buying condos and single-family homes? First and foremost, condos typically cost a fraction of a single-family home. While condos usually offer less square footage than a detached home, even when you calculate the price-per-square-foot, condos tend to be less expensive. Still, this does not always factor in the cost of the homeowner association dues, which can make your monthly costs even more than those associated with buying a detached home.

So what is the take home message? There are certainly benefits to buying condos as they offer a range of amenities you wouldn’t normally find in a single-family home. In addition, while condos tend to be smaller, you can often enter the real estate market much more easily because of the affordability of this type of property. Still, you should carefully review all the costs associated with condo purchase and determine whether the condo will actually save you money.

What you Need to Know Before you Buy a Condo

Condo Benefits

Hidden Costs

Condos versus Single-Family Homes

Who is Responsible for Property Maintenance?

Property maintenance is a broad term that involves a wide variety of duties, not limited to repairs and cleaning. While tenants are responsible for maintain the condition of their unit, and building owners are responsible for providing the budget for building repairs, the property manager does own most of the maintenance tasks from finding tenants, setting and collecting rent, to managing maintenance and repairs, and supervising building employees.

Tenants and Rent

First and foremost, property managers are responsible for managing tenants and collecting rent. More specifically, they are required to find and screen tenants, handle leases, manage complaints and emergencies, deal with moves, and handle evictions. Indeed, property management company must ensure that units are occupied by qualified individuals by advertising the property appropriately, screening tenants by running background checks and employment checks, and even managing leases by setting their lengths and provisions. In addition, in case of complaint or emergency, your property manager is your problem solver. They are employed to take and resolve maintenance requests, noise complaints, and other emergencies. When a tenant vacates the property or needs to be evicted, the property manager deals with this as well. S/he will inspect the property to ensure there is no damage and determine the security deposit to be refunded while also initiating and conducting evictions.
Moreover, during tenancy, your property manager is required to maintain rents as well. S/he will set the initial rent and ensure collection throughout the tenancy. If rents need adjustment, it is the property manager’s responsibility to make changes according to municipal law. More about services & fees

Repairs and Maintenance

Another major duty of property managers is to ensure the quality and safety of the building. This will include regular inspections of common areas to verify that everything is operating correctly. They are responsible for initiating emergency repairs in a timely manner as well as performing preventative property maintenance so the building is always in its best condition. They must either conduct or hire professionals to conduct pest control, roof maintenance, landscaping, snow and trash removal, and any other maintenance tasks required. Whenever a need for repair arises, your property manager must attend to it either by conducting the repairs or hiring a professional to do so. Property managers should have a large network of professionals they can contact including plumbers, electricians, carpenters, and other trades-persons.

The Law

Finally, property managers are responsible for knowing and understanding local laws governing landlord-tenant relationships. When it comes to managing tenants, your property manager should have thorough knowledge with respect to screening a tenant, collecting security deposits and rents, ending a tenancy, evicting a tenant, and general safety standards.
Ultimately, the property manager should act in the best interests of the building owner to ensure the safe and fair operation of the building. As an owner, you should have little responsibility over the building as your property manager is on site and has the required skills and abilities to keep your building in good shape and your tenants happy.